Wednesday, February 02, 2011

Watchers for the 2-3-11 trading session


First red day Supernovae. Finished red by less than  4% last time, so more down side might be realistic. If it had fallen more than 10%  less could be expected as plausible. Always watch day 2 of a popped one. The plan is to play for more reddening on day 2. Conditional entry. A flat, nominally green or red open that immediately sells off on heavy volume or sports traditional confirmed weakness cues is a fade entry. Keep flat on greening or strength, especially early. This is less likely given the degree of redness today. Avoid entries as a short on big gaps up or down, but down is probably worse.


See my comments from last time, they mostly still apply. Early shorts who do not respect known entry signal triggers got squeezed. Up after hours, I am hoping for a gap and crap. A fade entry on morning panic dumping or confirmed weakness cues. This has been a monster of late with a gap fill and momentum, but it is going to make an awesome short soon, hopefully tomorrow or Friday. At this point longs are even riskier. Keep flat on greening /strength, including spiking up at or near the bell.


A blast from the past! In play both ways, I hate to admit it. Recent good financial numbers coupled with today's contract news blurb sent this soaring again. It is a low float short squeezer. It also has difficulty holding its spikes, even on day 2 of a move, historically. A live price action situation again. It could zoom more out of the gate up for a quick long scalp. Brave souls will try to top fish a fade, if it spikes up and loses momentum tomorrow. Safer would be if it just dumps hard on volume from the bell for the short scalp, or if it opens flat or barely green or red and steadily moves south for an entry on confirmed weakness cues. The firm is a joke.


Nice break out from a symmetrical triangle like formation of meandering. New 52s. I am looking for more. Possible long scalp on spiking up from or near the bell. Possible early red to green if it opens modestly weak and perks up off of that. 2 test looms, reached 1.87 today. Long on a take and hold of 2 on volume. Partial scale in possible on the drive to 2 and then more after it vanquishes it. Not into a short. Keep flat on fails.


See my comments for ABCW which this play resembles, without new 52's. Litigation settlement helped today, but more could follow. Chart pattern on the consolidation not as classic as the above stock but still looks acceptable. No shorts. Keep flat on consistently weak price action. Easily beat the Dow today.


The conference call outlook went well, with a beat down of analyst estimates. I expect more gravy tomorrow as no run up occurred whatever. No shorts. Keep flat on sustained weak price action. Possible long scalp on spiking up at the gun. Possible early red to green long. Up after hours, this is also a long on consistent trading above the opening price level if we steadily advance from the bell. That is more likely on a flat or nominally green open. Avoid big gaps in any direction, especially up.


Enormous volume into the close. Probable gap on open and follow through spiking up at or near the gun to long scalp into. Should take .05 easily on the gap or in early greening. Probably not an EOD exit, as it could lose momentum early. Stay flat on immediate high volume dumping from or near the bell or sustained weak price action. Avoid shorts. This has been brewing for a while now, and the closing accumulation is telling.

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